Coal imports by power plants fall 27.4% in FY26
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Thermal power plants imported 45.4 million tonnes of coal in FY 2025-26, down about 27.4 per cent from 62.5 MT in FY 2024-25, the Coal Ministry told Rajya Sabha on 27 July 2026. Plants designed for imported coal also cut imports, to 2.88 MT in April 2026 from 3.97 MT. More domestic supply under new linkage rules drove the fall.
- Released
- 27 Jul 2026, Rajya Sabha reply, Coal Ministry
- FY 2025-26 imports
- 45.4 MT (62.5 MT in FY 2024-25), down about 27.4%
- Imported-coal plants
- 2.88 MT in April 2026 vs 3.97 MT in April 2025
- Linkage
- ACQ raised to 100% of normative need
- Policy
- Revised SHAKTI Policy, 2025
- Price
- CIL notified price up only ₹20 a tonne over eight years
Coal imports by power plants: what happened?
The reply lists steps on two fronts to cut the power sector’s import dependence: more assured domestic coal with better logistics, and pricing that keeps Indian coal competitive. The Government’s stated aim is to end non-essential coal imports.
- ACQ was raised to 100% where it had been cut to 90% (non-coastal) or 70% (coastal plants).
- Since 2022, coal for the full PPA requirement of existing power linkage holders is made available.
- Imported Coal Based plants can now get domestic coal under the Revised SHAKTI Policy, 2025.
- CoalSETU linkages should raise washed coal supply.
- 139 First Mile Connectivity projects of 1319 MT capacity are planned by FY 2029-30; 33 critical rail projects are part of the logistics plan.
Is coal import restricted?
- No. Coal is under Open General Licence; buyers may import on paying duty.
- The removal of the GST compensation cess has made domestic coal more competitive.
Why does coal imports by power plants matter?
- Energy security: Less import dependence for power.
- Forex: Lower coal import bill.
What can Prelims ask on coal imports by power plants?
- Power plant coal imports FY 2025-26: 45.4 MT (down 27.4%).
- Revised SHAKTI Policy, 2025; CoalSETU window.
- Coal is under OGL.
How to use this in Mains
- As per PIB (2026-07-27): thermal plants imported 45.4 MT coal in FY 2025-26 vs 62.5 MT in FY25, a 27.4% decline.
- Lower coal imports save foreign exchange and improve energy security.
Quotable data pointThermal plants imported 45.4 MT coal in FY 2025-26 vs 62.5 MT in FY25, a 27.4% decline.
PIB: Coal: decline in imports, 27 Jul 2026
Exam angle
Prelims: coal statistics.
Practice MCQs
Original practice questions (not PYQs).
In FY 2025-26, coal imports by Indian thermal power plants
Answer (c) & explanation
Coal Ministry, Rajya Sabha reply, 27 Jul 2026: 45.4 MT vs 62.5 MT.
Questions students ask about this
How much coal did power plants import in FY 2025-26?
45.4 million tonnes, down about 27.4 per cent from 62.5 MT in FY 2024-25.
What is ACQ?
Annual Contracted Quantity of coal under a linkage; it has been raised to 100 per cent of the normative requirement.
Can imported-coal plants use Indian coal?
Yes. Imported Coal Based plants are allowed to secure coal under the Revised SHAKTI Policy, 2025.
Keep studying
Go deeper
Official source: PIB: Coal: decline in imports, 27 Jul 2026
facts from cited sources only; faculty review pending